WTI Oil prices fall as G7 considers reserve release, IEA calls emergency meeting

Oil prices drop sharply on Tuesday as G7 energy officials signal readiness to release strategic reserves if needed.
The International Energy Agency called an emergency meeting to assess global supply security and market conditions.
Ongoing disruptions around the Strait of Hormuz continue to support volatility in the Oil market.

Ghiles Guezout FXStreet

West Texas Intermediate (WTI) US Oil corrects lower on Tuesday, with the price trading around $82.30 at the time of writing, down 1.15% on the day as markets reassess supply risks following comments from international energy officials.

The decline comes after remarks reported by Reuters suggesting that G7 countries are considering the possibility of releasing strategic Oil reserves to stabilize markets amid current supply disruptions.

Japan’s Industry Minister Ryosei Akazawa said on Tuesday that he discussed the global energy situation with G7 energy ministers, including the potential release of strategic Oil reserves if necessary. According to Akazawa, the G7 confirmed its readiness to take “necessary measures” to support global energy supplies.

The Executive Director of the International Energy Agency (IEA), Fatih Birol, also stressed the need to restore shipping through the Strait of Hormuz, a crucial waterway through which roughly 20% of global Oil shipments pass. He added that a coordinated release of strategic reserves could be considered to ease tensions in the market.

In this context, Fatih Birol announced that the IEA has convened an extraordinary meeting of member governments later today to assess the current security of supply and overall market conditions.

These discussions come as Oil markets remain highly volatile. Supply disruptions linked to the closure of the Strait of Hormuz recently pushed Crude Oil prices sharply higher, as traders feared a significant tightening of global supply.

However, the prospect of a coordinated intervention by major economies to inject additional Oil into the market is helping to ease immediate supply concerns, prompting some profit-taking after the recent surge in prices.

(This story was corrected on March 10 at 17:25 GMT to say that Japan’s Industry Minister's name is Ryosei Akazawa, not Yoji Muto Akazawa.)

Author

Ghiles Guezout

FXStreet

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold pops to weekly highs near $4,400

Gold climbs sharply and clinches fresh weekly peaks around the $4,480 zone per troy ounce on Thursday. The precious metal’s bounce leaves behind three daily declines in a row and follows the marked retracement in the US Dollar as well as another negative performance of crude oil prices.

BoE recap: A cautious stance amid rising inflation risks

The Bank of England left Bank Rate unchanged at 3.75% but delivered a distinctly hawkish message as its inflation outlook deteriorated sharply.

One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.